Technicals | Jun 09 2020
As we had been anticipating for a few weeks now, the S&P/ASX 200 Index finally cracked 6000 last week and it still appears to have a bit further to go. We have remained positive on the market's direction since the end of March when many other "commentators" and newsletter writers started to turn into net sellers, waiting for the "inevitable" retest of the March lows. The share market gains during the last few weeks is another example of why you need to stick with the trend and listen to what the market is telling you, not what you think it should be saying. Leave the ego at the front door and your results will improve.
Our strategy of being exposed to companies that benefit from the re-opening of the economy remains valid for now. On that theme, this week's report contains charting commentary on Sydney Airport Holdings ((SYD)).
We had a look at SYD on 21 April and thought that the chart looked quite positive. Unfortunately, it failed to kick on straight away but we can see now that it has been forming an ascending triangle in readiness for a big move higher. Last Friday we saw SYD break clear of this triangular trading range (circled). Because the shares spent so long consolidating, it means that this rally has a higher chance of being sustainable. We may see some resistance come in near $7.50, otherwise $8.00 appears to be the next obvious resistance level.
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Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
Bachelor of Engineering, Hons. (University of Sydney)
Bachelor of Commerce (University of Sydney)
Diploma of Mortgage Lending (Finsia)
Diploma of Financial Services [Financial Planning] (Finsia)
Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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